BILL NUMBER: AB 1576	CHAPTERED  07/14/99

	CHAPTER   126
	FILED WITH SECRETARY OF STATE   JULY 14, 1999
	APPROVED BY GOVERNOR   JULY 14, 1999
	PASSED THE ASSEMBLY   JULY 6, 1999
	PASSED THE SENATE   JUNE 24, 1999
	AMENDED IN SENATE   JUNE 21, 1999
	AMENDED IN SENATE   JUNE 10, 1999

INTRODUCED BY   Committee on Health (Gallegos (Chair), Baugh (Vice
Chair), Bates, Firebaugh, Kuehl, Steinberg, Thomson, Vincent and
Wildman)

                        FEBRUARY 26, 1999

   An act to amend Sections 130100, 130105, 130110, 130140, and
130155 of, and to amend the heading of Division 108 (commencing with
Section 130100) of, the Health and Safety Code, and to amend Sections
30131, 30131.3, and 30131.4 of, and to amend the heading of Article
3 (commencing with Section 30131) of Chapter 2 of Part 13 of Division
2 of, the Revenue and Taxation Code, relating to child development,
and declaring the urgency thereof, to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1576, Committee on Health.  Children and family health
programs.
   (1) The California Children and Families First Act of 1998
establishes the California Children and Families First Program,
funded by certain surtaxes imposed on the sale and distribution of
cigarettes and tobacco products and deposited into the California
Children and Families First Trust Fund Account, to be used for the
implementation of comprehensive early childhood development and
smoking prevention programs.  Existing law requires that funds in the
account be distributed to those counties that elect to participate
in the program by creating county commissions and meeting other
criteria.
   This bill would rename that program the California Children and
Families Program.  This bill would also define "relevant county" for
purposes of the program.
   (2) An initiative measure, the act provides that it may be amended
only by a vote of 2/3 of the membership of both houses of the
Legislature and that all amendments to the act shall be to further
the act and must be consistent with its purposes.
   This bill, in conformance with those requirements, would declare
that its provisions further the act and are consistent with its
purposes.
  (3) This bill would declare that it is to take effect immediately
as an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The heading of Division 108 (commencing with Section
130100) of the Health and Safety Code is amended to read:

      DIVISION 108.  CALIFORNIA CHILDREN AND FAMILIES PROGRAM

  SEC. 2.  Section 130100 of the Health and Safety Code is amended to
read:
   130100.  There is hereby created a program in the state for the
purposes of promoting, supporting, and improving the early
development of children from the prenatal stage to five years of age.
  These purposes shall be accomplished through the establishment,
institution, and coordination of appropriate standards, resources,
and integrated and comprehensive programs emphasizing community
awareness, education, nurturing, child care, social services, health
care, and research.
   (a) It is the intent of this act to facilitate the creation and
implementation of an integrated, comprehensive, and collaborative
system of information and services to enhance optimal early childhood
development.  This system should function as a network that promotes
accessibility to all information and services from any entry point
into the system.  It is further the intent of this act to emphasize
local decisionmaking, to provide for greater local flexibility in
designing delivery systems, and to eliminate duplicate administrative
systems.
   (b) The programs authorized by this act shall be administered by
the California Children and Families Commission and by county
children and families commissions.  In administering this act, the
state and county commissions shall use outcome-based accountability
to determine future expenditures.
   (c) This division shall be known and may be cited as the
"California Children and Families Act of 1998."
  SEC. 3.  Section 130105 of the Health and Safety Code is amended to
read:
   130105.  The California Children and Families Trust Fund is hereby
created in the State Treasury.
   (a) The California Children and Families Trust Fund shall consist
of moneys collected pursuant to the taxes imposed by Section 30131.2
of the Revenue and Taxation Code.
   (b) All costs to implement this act shall be paid from moneys
deposited in the California Children and Families Trust Fund.
   (c) The State Board of Equalization shall determine within one
year of the passage of this act the effect that additional taxes
imposed on cigarettes and tobacco products by this act has on the
consumption of cigarettes and tobacco products in this state.  To the
extent that a decrease in consumption is determined by the State
Board of Equalization to be the direct result of additional taxes
imposed by this act, the State Board of Equalization shall determine
the fiscal effect the decrease in consumption has on the funding of
any Proposition 99 (the Tobacco Tax and Health Protection Act of
1988) state health-related education or research programs in effect
as of November 1, 1998, and the Breast Cancer Fund programs that are
funded by excise taxes on cigarettes and tobacco products.  Funds
shall be transferred from the California Children and Families Trust
Fund to those affected programs as necessary to offset the revenue
decrease directly resulting from the imposition of additional taxes
by this act.  Such reimbursements shall occur, and at such times, as
determined necessary to further the intent of this subdivision.
   (d) Moneys shall be allocated and appropriated from the California
Children and Families Trust Fund as follows:
   (1) Twenty percent shall be allocated and appropriated to separate
accounts of the state commission for expenditure according to the
following formula:
   (A) Six percent shall be deposited in a Mass Media Communications
Account for expenditures for communications to the general public
utilizing television, radio, newspapers, and other mass media on
subjects relating to and furthering the goals and purposes of this
act, including, but not limited to, methods of nurturing and
parenting that encourage proper childhood development, the informed
selection of child care, information regarding health and social
services, the prevention of tobacco, alcohol, and drug use by
pregnant women, and the detrimental effects of secondhand smoke on
early childhood development.
   (B) Five percent shall be deposited in an Education Account for
expenditures for programs relating to education, including, but not
limited to, the development of educational materials, professional
and parental education and training, and technical support for county
commissions in the areas described in subparagraph (A) of paragraph
(1) of subdivision (b) of Section 130125.
   (C) Three percent shall be deposited in a Child Care Account for
expenditures for programs relating to child care, including, but not
limited to, the education and training of child care providers, the
development of educational materials and guidelines for child care
workers, and other areas described in subparagraph (B) of paragraph
(1) of subdivision (b) of Section 130125.
   (D) Three percent shall be deposited in a Research and Development
Account for expenditures for the research and development of best
practices and standards for all programs and services relating to
early childhood development established pursuant to this act, and for
the assessment and quality evaluation of such programs and services.

   (E) One percent shall be deposited in an Administration Account
for expenditures for the administrative functions of the state
commission.
   (F) Two percent shall be deposited in an Unallocated Account for
expenditure by the state commission for any of the purposes of this
act described in Section 130100 provided that none of these moneys
shall be expended for the administrative functions of the state
commission.
   (G) In the event that, for whatever reason, the expenditure of any
moneys allocated and appropriated for the purposes specified in
subparagraphs (A) to (F), inclusive, is enjoined by a final judgment
of a court of competent jurisdiction, then those moneys shall be
available for expenditure by the state commission for mass media
communication emphasizing the need to eliminate smoking and other
tobacco use by pregnant women, the need to eliminate smoking and
other tobacco use by persons under 18 years of age, and the need to
eliminate exposure to secondhand smoke.
   (H) Any moneys allocated and appropriated to any of the accounts
described in subparagraphs (A) to (F), inclusive, that are not
encumbered or expended within any applicable period prescribed by law
shall (together with the accrued interest on the amount) revert to
and remain in the same account for the next fiscal period.
   (2) Eighty percent shall be allocated and appropriated to county
commissions in accordance with Section 130140.
   (A) The moneys allocated and appropriated to county commissions
shall be deposited in each local Children and Families Trust Fund
administered by each county commission, and shall be expended only
for the purposes authorized by this act and in accordance with the
county strategic plan approved by each county commission.
   (B) Any moneys allocated and appropriated to any of the county
commissions that are not encumbered or expended within any applicable
period prescribed by law shall (together with the accrued interest
on the amount) revert to and remain in the same local Children and
Families Trust Fund for the next fiscal period under the same
conditions as set forth in subparagraph (A).
   (e) All grants, gifts, or bequests of money made to or for the
benefit of the state commission from public or private sources to be
used for early childhood development programs shall be deposited in
the California Children and Families Trust Fund and expended for the
specific purpose for which the grant, gift, or bequest was made.  The
amount of any such grant, gift, or bequest shall not be considered
in computing the amount allocated and appropriated to the state
commission pursuant to paragraph (1) of subdivision (d).
   (f) All grants, gifts, or bequests of money made to or for the
benefit of any county commission from public or private sources to be
used for early childhood development programs shall be deposited in
the local Children and Families Trust Fund and expended for the
specific purpose for which the grant, gift, or bequest was made.  The
amount of any such grant, gift, or bequest shall not be considered
in computing the amount allocated and appropriated to the county
commissions pursuant to paragraph (2) of subdivision (d).
  SEC. 4.  Section 130110 of the Health and Safety Code is amended to
read:
   130110.  There is hereby established a California Children and
Families Commission composed of seven voting members and two ex
officio members.
   (a) The voting members shall be selected, pursuant to Section
130115, from persons with knowledge, experience, and expertise in
early child development, child care, education, social services,
public health, the prevention and treatment of tobacco and other
substance abuse, behavioral health, and medicine (including, but not
limited to, representatives of statewide medical and pediatric
associations or societies), upon consultation with public and private
sector associations, organizations, and conferences composed of
professionals in these fields.
   (b) The Secretary of the California Health and Human Services
Agency and the Secretary for Education, or their designees, shall
serve as ex officio nonvoting members of the state commission.
  SEC. 5.  Section 130140 of the Health and Safety Code is amended to
read:
   130140.  Any county or counties developing, adopting, promoting,
and implementing local early childhood development programs
consistent with the goals and objectives of this act shall receive
moneys pursuant to paragraph (2) of subdivision (d) of Section 130105
in accordance with the following provisions:
   (a) For the period between January 1, 1999 and June 30, 2000,
county commissions shall receive the portion of the total moneys
available to all county commissions equal to the percentage of the
number of births recorded in the relevant county (for the most recent
reporting period) in proportion to the entire number of births
recorded in California (for the same period), provided that each of
the following requirements has first been satisfied:
   (1) The county's board of supervisors has adopted an ordinance
containing the following minimum provisions:
   (A) The establishment of a county children and families
commission.  The county commission shall be appointed by the board of
supervisors and shall consist of at least five but not more than
nine members.
   (i) Two members of the county commission shall be from among the
county health officer and persons responsible for management of the
following county functions:  children's services, public health
services, behavioral health services, social services, and tobacco
and other substance abuse prevention and treatment services.
   (ii) One member of the county commission shall be a member of the
board of supervisors.
   (iii) The remaining members of the county commission shall be from
among the persons described in clause (i) and persons from the
following categories:  recipients of project services included in the
county strategic plan; educators specializing in early childhood
development; representatives of a local child care resource or
referral agency, or a local child care coordinating group;
representatives of a local organization for prevention or early
intervention for families at risk; representatives of community-based
organizations that have the goal of promoting nurturing and early
childhood development; representatives of local school districts; and
representatives of local medical, pediatric, or obstetric
associations or societies.
   (B) The manner of appointment, selection, or removal of members of
the county commission, the duration and number of terms county
commission members shall serve, and any other matters that the board
of supervisors deems necessary or convenient for the conduct of the
county commission's activities, provided that members of the county
commission shall not be compensated for their services, except they
shall be paid reasonable per diem and reimbursement of reasonable
expenses for attending meetings and discharging other official
responsibilities as authorized by the county commission.
   (C) The requirement that the county commission adopt an adequate
and complete county strategic plan for the support and improvement of
early childhood development within the county.
   (i) The county strategic plan shall be consistent with, and in
furtherance of the purposes of, this act and any guidelines adopted
by the state commission pursuant to subdivision (b) of Section 130125
that are in effect at the time the plan is adopted.
   (ii) The county strategic plan shall, at a minimum, include the
following:  a description of the goals and objectives proposed to be
attained; a description of the programs, services, and projects
proposed to be provided, sponsored, or facilitated; and a description
of how measurable outcomes of such programs, services, and projects
will be determined by the county commission using appropriate
reliable indicators.  No county strategic plan shall be deemed
adequate or complete until and unless the plan describes how
programs, services, and projects relating to early childhood
development within the county will be integrated into a
consumer-oriented and easily accessible system.
   (iii) The county commission shall, on at least an annual basis, be
required to periodically review its county strategic plan and to
revise the plan as may be necessary or appropriate.
   (D) The requirement that the county commission conduct at least
one public hearing on its proposed county strategic plan before the
plan is adopted.
   (E) The requirement that the county commission conduct at least
one public hearing on its periodic review of the county strategic
plan before any revisions to the plan are adopted.
   (F) The requirement that the county commission submit its adopted
county strategic plan, and any subsequent revisions thereto, to the
state commission.
   (G) The requirement that the county commission prepare and adopt
an annual audit and report pursuant to Section 130150.  The county
commission shall conduct at least one public hearing prior to
adopting any annual audit and report.
   (H) The requirement that the county commission conduct at least
one public hearing on each annual report by the state commission
prepared pursuant to subdivision (b) of Section 130150.
   (I) Two or more counties may form a joint county commission, adopt
a joint county strategic plan, or implement joint programs,
services, or projects.
   (2) The county's board of supervisors has established a county
commission and has appointed a majority of its members.
   (3) The county has established a local Children and Families Trust
Fund pursuant to subparagraph (A) of paragraph (2) of subdivision
(d) of Section 130105.
   (b) Notwithstanding any provision of this act to the contrary, no
moneys made available to county commissions under subdivision (a)
shall be expended to provide, sponsor, or facilitate any programs,
services, or projects for early childhood development until and
unless the county commission has first adopted an adequate and
complete county strategic plan that contains the provisions required
by clause (ii) of subparagraph (C) of paragraph (1) of subdivision
(a).
   (c) In the event that any county elects not to participate in the
California Children and Families Program, the moneys remaining in the
California Children and Families Trust Fund shall be reallocated and
reappropriated to participating counties in the following fiscal
year.
   (d) For the fiscal year commencing on July 1, 2000, and for each
fiscal year thereafter, county commissions shall receive the portion
of the total moneys available to all county commissions equal to the
percentage of the number of births recorded in the relevant county
(for the most recent reporting period) in proportion to the number of
births recorded in all of the counties participating in the
California Children and Families Program (for the same period),
provided that each of the following requirements has first been
satisfied:
   (1) The county commission has, after the required public hearings,
adopted an adequate and complete county strategic plan conforming to
the requirements of subparagraph (C) of paragraph (1) of subdivision
(a), and has submitted the plan to the state commission.
   (2) The county commission has conducted the required public
hearings, and has prepared and submitted all audits and reports
required pursuant to Section 130150.
   (3) The county commission has conducted the required public
hearings on the state commission annual reports prepared pursuant to
subdivision (b) of Section 130150.
   (e) In the event that any county elects not to continue
participation in the California Children and Families Program, any
unencumbered and unexpended moneys remaining in the local Children
and Families Trust Fund shall be returned to the California Children
and Families Trust Fund for reallocation and reappropriation to
participating counties in the following fiscal year.
   (f) For purposes of this section, "relevant county" means the
county in which the mother of the child whose birth is being recorded
resides.
  SEC. 6.  Section 130155 of the Health and Safety Code is amended to
read:
   130155.  The following definitions apply for purposes of this act:

   (a) "Act" means the California Children and Families Act of 1998.

   (b) "County commission" means each county children and families
commission established in accordance with Section 130140.
   (c) "County strategic plan" means the plan adopted by each county
children and families commission and submitted to the California
Children and Families Commission pursuant to Section 130140.
   (d) "State commission" means the California Children and Families
Commission established in accordance with Section 130110.
  SEC. 7.  The heading of Article 3 (commencing with Section 30131)
of Chapter 2 of Part 13 of Division 2 of the Revenue and Taxation
Code is amended to read:

      Article 3.
California Children and Families Trust Fund Account

  SEC. 8.  Section 30131 of the Revenue and Taxation Code is amended
to read:
   30131.  Notwithstanding Section 30122, the California Children and
Families Trust Fund is hereby created in the State Treasury for the
exclusive purpose of funding those provisions of the California
Children and Families Act of 1998 that are set forth in Division 108
(commencing with Section 130100) of the Health and Safety Code.
  SEC. 9.  Section 30131.3 of the Revenue and Taxation Code is
amended to read:
   30131.3.  Except for payments of refunds made pursuant to Article
1 (commencing with Section 30361) of Chapter 6, reimbursement of the
State Board of Equalization for expenses incurred in the
administration and collection of the taxes imposed by Section
30131.2, and transfers of funds in accordance with subdivision (c) of
Section 130105 of the Health and Safety Code, all moneys raised
pursuant to the taxes imposed by Section 30131.2 shall be deposited
in the California Children and Families Trust Fund and are
continuously appropriated for the exclusive purpose of the California
Children and Families Program established by Division 108
(commencing with Section 130100) of the Health and Safety Code.
  SEC. 10.  Section 30131.4 of the Revenue and Taxation Code is
amended to read:
   30131.4.  All moneys raised pursuant to taxes imposed by Section
30131.2 shall be appropriated and expended only for the purposes
expressed in the California Children and Families Act, and shall be
used only to supplement existing levels of service and not to fund
existing levels of service.  No moneys in the California Children and
Families Trust Fund shall be used to supplant state or local General
Fund money for any purpose.
  SEC. 11.  The Legislature finds and declares that this act furthers
the California Children and Families First Act of 1998 enacted by
Proposition 10 at the November 3, 1998, general election, and is
consistent with its purposes.
  SEC. 12.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to ensure that vital funding for the California Children
and Families Program is distributed to the appropriate counties at
the earliest possible time for expenditure for the purposes of the
program, it is necessary that this act take effect immediately.
